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Pattern help. New crocheter

Please help me What does dc in the top of the turning chain mean?

Here is pattern. I think I messed up. It is not making even holes as I am doing it. Do I attach the big rectangle to the sc chain first. I attached the small and it does not seem r ight
Can't I just make 2 rectangles, join them and the sc the neck opening?

http://www.lionbrand.com/patterns/cjif-monsterInLawPoncho.html?noImages=