1. First, fold the yellow felt in half diagonally and then place the Cone shape template along the fold as directed. Cut the felt along the template. Repeat this for the two other pieces of yellow felt. Trace the middle template three times onto the orange felt so that all three shapes fit onto the one piece of felt.
2. Cut three of the templates from the felt. Then Cut three 20-inch lengths from the ribbon. You will have three of each shape and three lengths of ribbon. Iron the middle crease out of one of the yellow base pieces. Place a white piece at the point of the base piece, lining up the sides so they match exactly.
3. Place an orange middle piece below the white piece so that the middle piece’s edges line up exactly with the base. The top of the middle piece will overlap the bottom curved edge of the top piece. Pin the middle piece down along both of its curved edges. When you pin along the top curved edge make sure that you are pinning through all three layers. Using the orange thread top stitch the middle piece along the pinned edges. By sewing the top edge of the middle piece you will also be sewing through the top piece. Fold and pin the entire piece in half width-wise, right sides together, so that it forms a pie-slice-shape.
4. Using the yellow thread, sew the pinned sides together with a 1/2-inch seam allowance. Sew horizontal line 2-inches above the bottom of the bag. Snip off the bottom angle of the bag a 1/4-inch from the bottom horizontal seam. Press the side seam of the bag open. Fold and pin the top edge of the bag 1/2-inch towards the wrong side all along the top edge. Since this is a curved edge it will not lay 100% flat so do not iron it down, just fold it over with your fingers and pin it. Using the yellow thread hand stitch this fold down with a small running stitch.
5. The stitches you make should be very small on the right side of the bag and wider on the wrong side. Open the bag so that the seam is in the center. Pin the ribbon 3/4-inch below the rim of the bag at the left and right sides, making sure not to twist the ribbon. Using the yellow thread sew the ends of the ribbon down 1/2-inch from the top edge of the bag. Make sure to backstitch on either end of these short seams to secure the handles. Turn the bag right side out, and your treat bag is ready!