The adiabatic compression model works well for the compression stroke, up to the point where combustion begins. At that point, both temperature and pressure rise by some other, undefined rule. Following shortly after TDC, there is an adiabatic expansion phase (the power stroke) until the valves open and the cylinder pressure drops very rapidly at that point.
The value of gamma depends on what you are compressing. Your 1.4 value is about right for air, but I have seen values as low as 1.35 used. It is hard to predict because what you have is a mixture, not a pure gas (at least that is true in most cases), so the gas properties depend on the mixture and are hard to predict by chemistry.
The reason for the adiabatic model is that heat transfer is a relatively slow process, and in a single crank cycle, there simply is not time for significant heat transfer to take place.
PS: your pressure value looks OK, assuming you start with a cylinder pressure at 14.7 psia at the beginning of the stroke.