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.
Place chocolate morsels in a small heavy-duty zip-top plastic bag; seal. Submerge in hot water until chocolate melts. Snip a tiny hole in 1 corner of bag, and drizzle chocolate over coconut balls. Store in refrigerator.