Hoisting Clarity Needed

gistfile1.txt

/*
See "Hoisting Section" on:
http://dailyjs.com/2012/07/23/js101-scope/
*/

/*
**QUESTION**
Why does Code 1 evaluate to "undefined" and Code 2 evaulate to "1". 
I thought both codes would evaluate to "1" because of hoisting.
*/


// CODE 1
function example() {
  console.log(a);
  var a = 1;
}

example();


// CODE 2
function example() {
  var a = 1;
  console.log(a);
}

example();