My inspiration for the majority of this furniture started with a pack of kids blocks from WalMart.  First i'll show you the finished pieces, then i'll break down the step by step.

Bedroom set

 The beds are made from 1x2 pieces of scrap wood.  The lamp is a wooden knob and an empty tape roll.

Bedroom set version #2

 The end table and chair are from a set of kids blocks from Walmart.

Dining Room Set

 The chairs are blocks.

Living Room Set

 The living room set is made from blocks.

Bedspreads

The bedspreads are felt squares folded down and stitched across the top.

Bed without bedspread

 Here's an "unmade" bed.  The fitted sheet is painted on with glitter paint.

End table

This end table is an old belt buckle, puff paint and a block.

Dining Table

The dining room table is a piece of 1x2 and a scrap piece of 2x2 wood.