I'm not sure if I've taken this up right but...
No, I think he really really should have kept it to himself. Really. He's very candid, isn't he! 
I'm assuming your DD is too young to understand.
Tbh he sounds like he has a right brass neck on him - calling out mid act, trying to make you feel like shit for having the audacity to carry out chores and see to daughter while he's footering with himself? Seriously?
I wouldn't stand for that. I'd suggest he put his little man away, get off his arse, give you a hand and then you can both relax as you please, with him presumably buggering off elsewhere to continue being a w@nker discreetly.
No one over the age of 14 should make such a song and dance about fiddling with himself. Rude. And quite weird.
Don't defend yourself. Don't entertain him. He's being utterly ridiculous.
You have the patience of Job!
(Might even consider smearing chilli powder in his right hand while he sleeps, the cheeky bugger. 😈)