Instructions
Approach any type of tree and hold down your left mouse button while facing its trunk to chop wood. Walk over the resource blocks that appear on the ground near the tree's base to add the lumber to your inventory.
Press "I" to open your inventory. Drag your raw lumber to any square of the crafting grid in the upper, right corner of the inventory window to produce wood planks. Drag the planks from the output box to any vacant inventory slot.
Right-click on your crafting table and drag two iron ingots to the fifth and seventh spaces of the crafting grid to create a pair of shears. Click and drag the shears from the output box to an open inventory space.
Locate a sheep and equip your shears with the scroll wheel on your mouse. Click on the sheep to remove its wool with your shears. Walk over to the wool resource blocks on the ground to collect them.
Right-click on your crafting table and drag three wood blocks to the bottom row of your crafting grid. Drag three wool blocks to the middle row of the grid to complete the bed pattern. Click on the crafted bed in the output window and drag it to your inventory.
Press "I" to open your inventory and equip your bed. Right-click on an empty floor or ground area of at least two adjacent squares to place the bed. Right-click on the bed any time after sunset to activate its sleep function.