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"How exactly do you do the cost averaging "

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You add the direct purchase dollars plus dividend dollars reinvested and
divide by the total number of shares purchased and accumulated via reinvestment.
A simple average cost of your shares.
You do have other options - but that would be the simplest approach.
You also can select to use a first-in, first out or a first-in last-out or
other approach to selling specific shares - then retain the documentation
showing the cost basis for the specific shares. My positions are generally
not sufficiently major to make much difference - so the average cost basis
works well for me.

Howie52
May fortune smile upon you in the sale.
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