My children came up with this all by themselves, mostly the older one. She is VERY creative. You will see I have credited her in all of my instructables. :)

Step 1: Cut Up the Sock

Cut sock into 3 pieces. Cut off toe and cut just above heel.

Step 2: Dress Barbie

Middle Section goes on first. Line up the heel with her bum. Add the ponytail holder around middle to keep skirt up. You need to fold over the holder once to make it tight enough. NOTE: This Barbie is sporting a fashionable silly band made from an actual rubber band for a pony-tail. :)

Step 3: Top Band Goes on As Barbie's Shirt

Put Barbie's hands up and put on shirt, pulling down the top section of the sock. Make sure the finished edge goes down to her waist. Roll up the bottom edge to make a nice accent band and make the top edge line up with her bust line. Turn her over and fold excess material over and secure with bobby pin. You could sew this if you wanted it to be finished but my girls only leave clothes on Barbie for .01238569948 seconds, on average, so there was little point. :)

Step 4: Hat on Head

Put toe of sock on head to make super simple hat. How cute!!!

Options:

Make 2 outfits from coordinating socks and mix and match colors
Use Embroidery floss and needle to add embroidered accents to outfit
Roll up hat brim to make a different hat.

I hope your kids enjoy making an outfit or two.