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Coat a 9x13 baking dish with cooking spray. Set aside.
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Combine 2 cups sugar, applesauce, Jell-O, unflavored gelatin and lemon juice in a large saucepan. Stir to combine. Let stand for 1 minute.
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Bring to a boil over medium heat stirring constantly.
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Boil for 1 minute and then immediately pour into prepared baking dish.
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Refrigerate until firm - until firm, about 3-4 hours
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Cover a large cutting board with parchment paper and sprinkle with sugar.
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Loosen the sides of the gelatin with a spatula and invert onto parchment paper.
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Use small, sharp cookie cutters to cut out gumdrops. If needed, you can dip the cutters into hot water first and also to keep the cutter clean.
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Leave the cutout gumdrops on top of the sugar-coated parchment paper for about 8 hours or until just slightly sticky.
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Roll the gumdrops in the remaining sugar and store in an airtight container.