I only know of two ways:

i)Compound Small Wooden Gears:
-1 Lauan=2 Lauan wood=6 Small Wooden Gears.
-Compound 1 Small Wooden Gear+ 1 Small Wooden Gear.
-You can compound the items that you get with Small Wooden Gears as well.
-Repeat the compounding process.

ii) The Seed Method:
-Collect Seeds (Apple/Cantaloupe/Pineapple/Grape) from the Chicken Farm near Welling Village. You do no need stacks of them. Just 2-3 will be enough.
-Compound Seed+ Organic Muck OR Small Wooden Gear*. You'll definitely get back a Seed. This is why I said that you do no so many Seeds to begin with.
-Repeat the compounding process.

I hope I'm able to help you out. Welcome to the world of alchemy~.

*My guess (haven't personally tested it yet) is that you can substitute the Organic Muck with any rank 1 item (Clay, Common Grass, etc.)