How is wood processed?

You make Processed wood by first collecting 5 Firewoods (it's best to farm the Scarecrows in the Haunted Mansion in New Leaf City [take the subway from Kerning City of Victoria island] because Scarecrows give good exp for levl 50 and they drop one piece of firewood for about every two Scarecrows you kill) and, I don't remember but I think you goto a person in Perion who makes you processed wood. Otherwise he's in Henesys.