I have made a quilted tote bag out of an orphan block - I just made the quilt sandwich with that block, quilted it, and made and quilted a second of the same size using just plain fabric. Then put the two pieces together, with the pieced side facing out, and sewed them together. To hide the raw edges, I sewed an extra-wide double-fold bias tape all the way around, and around the top. The handles were tubes of fabric turned inside out, and stitched directly onto the body of the tote.
Here's a pic if that will help it make sense.
ETA: I used this tote as a purse/laptop carrier for over a year, and it held up well. It's still functional, i just got a new purse and have been using it.