Short answer
Make Iron Kit I at a Smithy with the Hammer upgrade: 1 Iron Ingot becomes 4 kits (Smithing 3). The Iron Anvil only makes 1 per ingot, so the Smithy is four times better. Iron Kit II needs Smithy II with the Bellows upgrade: 1 Iron Ingot + 2 Clay Molds gives 4 kits in 12 ticks at Smithing 5. No trader buys either.

The Town workshop
View full-size image ↗Official promotional screenshot · © Lazy Bear Games / tinyBuild · Official media kit · Material credits
Iron Kit I
Smithy I with Hammer: 1 Iron Ingot → 4 Iron Kit I, 8 ticks, 2 energy per tick, Smithing mastery 3.
Iron Anvil: 1 Iron Ingot → 1 Iron Kit I, 8 ticks, 3 energy per tick, Smithing 7, after Iron Works and a Hardening Bucket. Avoid it.
Uses: Crate; Supply: Iron Tools; Supply: Cutlery I; Furniture Kit I; Supply: Furniture I; and 1 to 3 each for many Town restorations, including the Apothecary, Tailor, Smithy, Tavern and Brewery.
Iron Kit II
Smithy II with the Bellows upgrade: 1 Iron Ingot + 2 Clay Molds → 4 Iron Kit II, 12 ticks, Smithing 5. It unlocks with the Smithy II technology.
Uses: Supply: Clothes II (2), Furniture Kit II (1), Supply: Furniture II (3), Supply: Cutlery II (4), and 1 for Harold's Organic Music quest.
The Clay Mold catch
Clay Molds are cast at the Smithy, and without Coal it cannot make them. If Iron Kit II is stuck, check your Coal first — our coal guide covers the only source.
Automating kits
In the Factory, an Iron Kit I module runs on two Smithies worked by zombies. Our factory layout guide shows where it fits in the module order.
Both kits stack to 30 and go in the Builder's bag or universal bags.
Original diagram of a starter Factory line. An Iron Kit I module uses the same chest-station-chest pattern with two Smithies.
View full-size image ↗Original diagram · Graveyard Keeper 2 Wiki · editorial illustration · Original wiki diagram
Sources
- communitywikily.gg — Iron Kit I
- communitywikily.gg — Iron Kit II
- communitywikily.gg — Organic Music
Related pages
Official screenshot · © Lazy Bear Games / tinyBuildCraftingGraveyard Keeper 2 Iron: Ore, Ingots and the Smithy
Official screenshot · © Lazy Bear Games / tinyBuildProgressionGraveyard Keeper 2 Church Organ
Official screenshot · © Lazy Bear Games / tinyBuildCraftingGraveyard Keeper 2 Coal
Official screenshot · © Lazy Bear Games / tinyBuildAutomationGraveyard Keeper 2 Factory Layout & Setup
Official screenshot · © Lazy Bear Games / tinyBuildEconomyGraveyard Keeper 2 Town Orders