You can create weapons and armor using the materials dropped by slain monsters. To start making equipment, simply follow these instructions:

1. Tap the circle icon and go to "Armory".

 

2. In your Equipment Menu, Tap "Forge" to talk to Boldon the Blacksmith. 

3. Choose if you want to create a weapon or armor.

4. Tap on the equipment you want to create and then tap "Forge".