With 3 strands of yarn held together, cast on 24 sts, and divide evenly onto 3 needles. Join, being careful not to twist. Place marker for beg of rnd. Work in St st (k every rnd) until piece measures 5 in. (12.5 cm) from beg.
Rnd 1: *K4, k2tog; rep from * around—20 sts.
Rnd 2: Knit.
Rnd 3: *K3, k2tog; rep from * around—16 sts.
Rnd 4: Knit.
Rnd 5: *K2, k2tog, rep from * around—12 sts.
Rnd 6: Knit.
Rnd 7: *K1, k2tog, rep from * around—8 sts.
Rnd 8: Knit.
Rnd 9: K2tog around—4 sts.
Cut yarn, thread tail through remaining 4 sts. Pull tight.
Weave in ends. Following package directions, make a pompom and attach to top of Hat.