Wait, what?

That seems goofy.

The story is that Rorschach could not find anything but menial work. Got a job at a dressmaker's. Dr. M's presence by this time has made a lot of new materials available - one of them the material for the dress. This is not to say that Dr. M directly made the bolt of heat-sealed dual-film latex. Dress unwanted, Rorschach took it home, cut it up so it "didn't look like a woman", decided it had no immediate use, put it away and forgot about it. Later, the person who ordered the dress is murdered.