Fold them in half then measure where you want the beard to start on the foam cone. Put a dot of hot glue on and hold it for a few seconds. Continue around the whole thing.
Pull each mop string apart (it should make 4 single strands) to make the gnome fuller.
Push the bottom of a sock up inside of it to make the hat. Slip it on top of the cone. Tie the hanging piece with a piece of red twine.