Coat a 9 x 13-inch baking dish with cooking spray; set aside.

Combine 2 cups sugar, applesauce, Jell-O, unflavored gelatin and lemon juice in a large saucepan. Stir to combine. Let stand for 1 minute.

Bring to a boil over medium heat stirring constantly. Boil for 1 minute and then immediately pour into prepared baking dish. Refrigerate until firm, about three hours or overnight.

Cover a large baking sheet with parchment paper and sprinkle with remaining 1/2 cup sugar.

Loosen the sides of the gelatin with a spatula and carefully invert onto the sugar-coated parchment paper.

Use mini Christmas cookie cutters dipped in sugar to cut out gumdrops.

Leave the cutout gumdrops on top of the sugar-coated parchment paper 1-3 days or until just slightly sticky.

Roll the gumdrops in the remaining sugar and store in an airtight container.