Preheat oven to 400ºF.

Pour coconut into an even layer on a baking sheet and toast in the oven for 3-4 minutes until lightly browned, watching closely so it doesn't burn. Remove pan from oven and allow to cool.

Heat chocolate chips in microwave for one minute. Remove and stir in vegetable oil. If mixture is still lumpy, return to microwave for 15-20 more seconds, remove from microwave and stir until smooth. Stir in yellow cake mix. Add shredded coconut and sprinkles and continue stirring until fully incorporated.

Using a small cookie scoop (or two spoons), drop mixture onto a parchment-lined baking sheet. Add more sprinkles on top, if desired. Refrigerate until chocolate has set, about 20 minutes.