No, my settings are written out in the original question and i have uploaded your images with a red line under my actual settings.

From what I see you have enabled the costing method mechanism but you have also to setup the method for the products, this is usally done at the product category level where you will say "average" for example; then the cost price of the related products will change automatically

Ok so my settings in Inventory Module (Perpetual) and Purchasing Module (Average) are both correct? So I need to set average in the Inventory Module-Configuration-Product Categories. I just checked and there are 2 categories; All and All (Saleable). Both are set to Average & Periodic (manual). So this is what I need to modify to Average & Perpetual?