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In the menu, click the tab with the hammer on it. This is the crafting menu. If you have 20 copper ore and 25 stone in your inventory, you can craft a furnace straight from your pockets.
You can throw down the furnace anywhere outside within a range of 1 tile from yourself. To feed the furnace, you need to be holding a stack of at least 5 of an ore while at least 1 coal is in your inventory, and right-click the furnace while standing next to it. I put my first one near my shipping bin because copper smelts fast enough that I can smelt more than one copper bar while doing the daily watering.
And there's no real reason to restart. It's not a game where you can really lose much forever, and certainly not in the first season. There isn't even that much worth crafting besides field snacks for extra energy that early on. At that point in the game, focus upon gaining skills you need to gain crafting recipes through lots of clear-cutting your farm's trees and rock smashing, as well as growing tons of parsnips you can palm off on villagers as gifts. (Just about everyone likes parsnips...)
To be fair, I didn't get around to that quest until Spring of year 2, mostly because I didn't touch farming at all in year 1, so I just ignored any quests that weren't mining, fishing, or foraging related.
I was too busy getting the infrastructure for farming ready, getting my hoe and watering can upgraded to gold, getting plenty of cash for deluxe fertilizer and seeds to complete the bundles and unlock the greenhouse.