Abstract: A combined bag and wrapping sheet unit provides both an arrangement and method for dispensing items that are to be wrapped and then inserted into a bag. The bag of the unit is flat and collapsed and has two broad panels attached to one another along at least a portion of their side edges, a closed bottom end and an open top end. A saddle section is provided which is a planar extension of one of said board panels and further a weakened zone between the saddle section and the panel of which it is an extension is provided. The wrapping sheet is flexible and is a planar extension of the saddle section. A weakened zone is provided between the wrapping sheet and the saddle section. Both the wrapping sheet and the bag are readily detachable from opposite sides of the saddle section. A number of registered, identically oriented bag and wrapping sheet units are attached to each other so as to form a single assembly block.