The Dwell Studio for Target baby collections include packs of three 36″ x 36″ flannel receiving blankets for $9.99. The new collection Circles is especially cute and somewhat gender-neutral. I have a hard time finding flannel that I like, and it is hands-down the best fabric for making baby bibs.* These blankets don’t seem to be available online, unfortunately; I saw them in my local store.
* For bibs, don’t bother with anything that repels moisture “for easy cleanup” — oilcloth, etc. — you want baby mess absorbed so it can’t spread around! Moisture-repelling fabrics are good for the underside of the bib, though, so the mess doesn’t soak through to the baby’s clothes.