Items needed: Shears (Buy them at General Store located just North of Lumbridge Castle for one gold coin.)
Start: Talk to Fred the farmer located North-West from Lumbridge Castle. Use map to help you.
Fred: Fred tells you that he needs 20 balls of yarn.
-Go cut 20 peaces of wool off the sheep by using the shears on the sheep.
-Go back to Lumbridge Castle, in the South-West corner of the Castle go up to the Third floor and you will see a spinning wheel. Use wool on spinning wheel to make the balls of yarn.
-Go back to Fred and give him the 20 balls of yarn
Reward: 60 gold coins, one Quest Point, and crafting Exp.