Melt butter in a saucepan over low heat; remove from heat. Stir in sugar and coconut; shape into 3/4 inch balls. Chill until firm.
Microwave 2 cups (12 ounces) semisweet chocolate morsels in a 2-cup glass measuring cup at HIGH 1 1/2 minutes or until melted, stirring twice. Dip coconut balls in melted chocolate, allowing excess to drip, and place on wax paper. Let stand until firm.