It might help to look at the two variable case, and to consider it in terms of the truth values of some statements. Let
$$A = \textrm{Today is Monday} \\ B = \textrm{It is raining today}$$
Then if we look at the possible combinations of $A$ and $A'$ with $B$ and $B'$, they correspond to:
$$\begin{array}{|c|c|c|} \hline & A & A' \\
\hline
B & \textrm{Today is Monday and it is raining} & \textrm{Today is not Monday and it is raining} \\
\hline
B' & \textrm{Today is Monday and it is not raining} & \textrm{Today is not Monday and it is not raining} \\
\hline\end{array}$$
So you can see that $AB + A'B' \neq 1$, because it only covers rainy Mondays and non-rainy non-Mondays, missing out fine Mondays and wet Thursdays entirely.
You can state that $AB + (AB)' = 1$, but notice that $(AB)'$ corresponds to "It is not a rainy Monday", which holds true if either today is not Monday or it isn't raining, i.e. $(AB)' = A'B + AB' + A'B' = A' + B'$. This is one of De Morgan's Laws, which is the correct way to deal with the interaction of negation with multiplication or addition in Boolean algebra.