I came across an open source resource that simplifies in-app billing on Android. Take a look at http://project.soom.lahttp://soom.la. They also have a reference app that shows you how to use it. Here is the Sample app on Google Play and on Githubsample app on Github
I'm using Unity, they also provide a free plugin on the Unity Asset Store: https://www.assetstore.unity3d.com/en/#!/content/6103.