When Earl is working together with the chain gang he takes off his shirt and is therefore mistaken as an inmate as well. He gets on the bus and leaves his flannel at the roadside. Later to the end he is wearing that shirt again and has his list back as well, which is always pocketed in his chest pocket.
When Earl is being lifted out of the water tower by the rescue workers, he is holding the American Flag. In a previous scene, Randy and Earl both unsuccessfully attempted to get hold of the candy bars, so Earl could not have gotten hold of the flag.
When Earl and Randy fall through the roof of the water tower, we see an American flag on the floor. However, Earl was waving the flag above his head when the roof collapsed. The flag should have been the last thing to hit the floor. The flag must have been placed on the floor prior to filming the scene.