Cut 40 pieces of yarn at 11 inches. Cut a 3/4 inch wide piece off the end of an empty toilet paper tube. Fold one piece of yarn in half, creating a loop, and place the loop through the center of the tube.
Reach through the loop to grab the tail ends of the yarn, then pull them through the loop to the right, pulling them tight.
Repeat 35-40 times until the entire tube is covered with yarn. Then grab all the tails of yarn, twist them together, and push them through the tube. This hides the knots and creates a cuff for the hat.
Cut 7 pieces of macrame cord at 11 inches. Fold one piece in half, creating a loop. Place the loop through the center of a wooden right.
Pull the tail ends of the yarn through the loop and then pull them to the left, pulling tight. Repeat with the other pieces of macrame cord.
Starting from the bottom, comb out the macrame cord to separate it into individual strands. When it is combed out smooth, cut it into a beard shape.
Glue on the wood bead for a nose.
Place glue on the sides of the wood ring above the beard, then place the hat onto the ring, sliding it down to meet the beard.
Separate the yarn on the hat into three sections and braid it together once or twice. Tie tightly with a 12 inch piece of yarn or twine.
Trim the excess yarn. Do not cut the twine you used to tie the hat with - tie the ends together to make a hanging loop. Glue a white pom pom at the top of the hat.
Optional: To stiffen up the beard and help it stay in place, comb it out again and spray with hair spray. Let it dry, then flip it over and spray again. Repeat. Trim the beard again if needed.