I bought a woven table runner from S.Army store for 1.99. Sewed it into a tote bag, added some webbing for handles and it is great.
Have bought many pieces of fabric from Goodwill, Savers etc. mostly to make bags/purses, but flannel sheets make good backs for comfort quilts.
I've also started buying little girls jeans with the fancy emb. on the back pockets to turn into purses.