tr is not the right tool for this since tr does char by char translation instead of char to a string replacement. use awk:
awk '{printf("'"'"'%s'"'"',", $0)} END{print ""}' 1.txt
To avoid all weird double quote/single quote stuff use:
awk '{printf("\x27%s\x27,", $0)} END{print ""}' 1.txt
To avoid printing comma after last line:
awk '{a[cnt++]=$0} END{ for (i=0; i<length(a)-1; i++) printf("\x27%s\x27,", a[i]);
print a[i]}' 1.txt