At my son's school, once he knew all the sounds of all the letters, they give him a box that contains all of the letters of the alphabet sorted out. Then they give him 4-5 cards with a simple picture on them. He lays the cards down picture up.
If the photo is of a car, he'll first sound out the word, and then get the letters and put them in order. When he thinks he has it, he flips the card over to check his work.
The ones we've seen him do are car, fan, cat, man, cup, dog, frog, and boy.