Its a Creepy Crawler factory. Kinda like an Easy Bake Oven for the for the non Suzy Homemaker set.
We had one of these when we were kids. You would squirt the liquid provided into the forms and then "bake it" to make all sorts of bugs and assorted insects in various colors. I loved playing with this toy and creating new creepy crawlers.
As I recall the liquid was called Goop, or Super Goop. For some reason, lost in a dead brain cell, I started calling my youngest sister, Goop or Goopie. The name stuck in our family. I still call her Goop.
She even named her blog The Super Goop.
Talk about flashbacks.