Good morning, yes, that’s how I’d do it. You crochet the foundation chain from the top; the 39th and 40th half double crochets go into a chain stitch, and then you crochet back down the foundation chain. Double the last stitch. I’ve attached a picture I took—the stitch count doesn’t match, though; it’s just an example.
Rounds 2–26: Always 80 half double crochets in the round—this closes the bottom of your crochet piece and makes it look like a bag.
Unfortunately, I can’t explain Row 27 because I don’t know what your project looks like.
Did you purchase the pattern here on CP? If so, why not ask the author directly using the contact form? She’ll be happy to help and can explain it best.