Grease a 9x9 inch glass baking dish, and set aside.
Place applesauce in a saucepan, and bring to a boil over medium-high heat. Stir in 1 cup sugar, and return to a boil. Boil for 1 minute. Stir in gelatin mix, and boil for one more minute. Pour into the prepared pan, and chill for several hours or overnight, until firmly set.
Once the gelatin has set, coat the top surface with white sugar. Turn the pan over, and tap the gel out onto a clean surface that has been dusted with sugar. Cut into 1 inch squares, and roll in sugar. Candy will be very sticky. Let the sugared squares set out to dry for at least a couple of hours before storing.
