I made it using an amazon.com box. I get tons of stuff from amazon and am trying to think of ways I can use the boxes instead of throwing them away. I first appliqued the train on felt with scraps. Then I used clothes pins to hold the felt to the cardboard in the shape of a cylinder. I then hand sewed the felt to a piece of cardboard from the amazon box with embroider floss. I then hot glued two pieces of cut out cardboard in the shape of a circle. I finished it off by hot gluing felt to cover the bottom piece. I added a strap from a broken bag that I salvaged.
My little one was very interested in it.
Cost: I spent $1 on the felt.