i... er?...
I guess your help needed is about the Radial? you should see a note somewhere in the Smith's bedroom for activating the radial
Small, Normal, Large -> 1 ingot 2 ingot 3 ingot
Shields (parts) and daggers are 1 ingot (non-hand/one hand)
Shields (rims), Swords, hatchets, and Mallets (and maces) -> 2 ingots (one hand)
Great Swords, Great Hammers, and two-side axe (and pickaxe) -> 3 ingots (two hand)
First equip can just be equiped, upgrades/2nd+ equip, select the tool slot before trying to equip
You'll be notified when you properly assemble an item, only properly assembled (or rather, only items that notify you) can be sold to customers
But
The Smith can equip certain others that can't be sold. Which can be a smidgenly helpful because one hand grips are cheaper.
The Pickaxe is a 2h item, only 2h grip pickaxe will make an item/be saleable - but the Smith can use a 1h grip pickaxe
the one hand axe (hatchet) is a 1h item, but the smith can equip a 2h version of it, but, they cannot equip a large axe head, regardless of 1h or 2h, only the hatchet/small axe head - same applies to Mallet/hammer for smith, 1h item, but the smith can 2h-version it