The production of gamma rays above 10 MeV by the interaction of cosmic rays in the atmosphere and the lunar surface is simulated using Monte Carlo methods. The calculation incorporates a new model of high-energy nucleon-nucleus interactions based on empirical fits to inclusive cross sections for the production of pions and nucleons. The atmospheric gamma ray flux is calculated as a function of direction, energy, and atmospheric depth. These calculations are compared with observations from balloons and from the SAS 2 satellite. Estimates of the flux of earth albedo electrons produced by cosmic ray interactions are presented. The lunar gamma ray albedo is calculated and compared with an upper limit based on SAS 2 measurements.