Im pretty sure I could make something like this.a few old pallets sanded back, a slab of mattress foam and pretty material to sew it up with. invest in some pretty cushions and you have a cheap as chips lounge! - DIY Home Project
For the living room - if having more visitors, makes the couch an easy sleeping option. If Tom's willing to give up his couch sleeping thing. DIY: Couch made from an old door. Tutorial, info & lots of pics explaining how to build this couch.