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Another shell solution:
var=$( while read L; do printf "%s'%s'" "$sep" "$L"; sep=", "; done < file )
Translating to awk saves the explicit loop:
var=$( awk '{printf "%s'\''%s'\''",sep,$0; sep=",...

and the Oscar goes to

:b:

Unix sed:
sed -e ':L1' -e N -e '$!bL1' -e "s/.*/'&'/;s/\n/','/g" fileRead the whole file into the memory buffer, then
insert a ' at the beginning and end of the buffer,
replace all intermediate \n...