Yeah, it's true that rats eat their dead. Whether they do or not depends on a number of things. If they have plenty of high quality food and water available they're less likely too, but it's not a guarantee. It depends on how quickly you find and remove the dead ones. The longer a dead body is in there the more likely they'll start to chew on it. I've found partially gnawed on dead rats ones before, but never an entire rat missing. They are capable of chewing up and digesting bone though.
Seven isn't unheard of if they start breeding early. Her next litter should be bigger.