Take a look at June Calender's selvage jacket in progress. She started with an over-sized sweatshirt. Then she proceeded to cut the ribbing off the cuffs, neck, and the bottom edge. Finally, she cut up the front to make it a "cardigan," and cut up the sides and along the sleeve seams so she could easily add the selvages. To get the whole story from June, see her blog at: http://www.calenderpages.blogspot.com/. She describes it to you step by step.
I sure hope we get to see June modeling this fancy jacket at our next Empire Quilt Guild meeting. We meet at the Fashion Institute; how appropriate is that?