In a medium bowl, mix together the powdered peanut butter and unsweetened applesauce until well combined. The mixture should form a thick dough. Start with a spoon, then use your hands— it will come together with just a little patience.
Using your hands, roll the mixture into 1-inch balls. You should get 10-12 balls. Place them on a parchment-lined baking sheet or plate. Melt the chocolate in the microwave in 30-second intervals, stirring between each interval. You can also use a double boiler. Stir in the coconut oil, if using, until fully combined and smooth.
Using a fork or toothpick, dip each ball into the melted chocolate, allowing excess to drip off. Place back on the parchment-lined sheet.
Refrigerate for 15–30 minutes until the chocolate has completely hardened.
Once the chocolate has set, your balls are ready to eat! Store in an airtight container in the refrigerator, or freeze for up to 2 months.