This paper describes the physical modelling of neutron scattering in two polycrystalline inclusion compounds, fully deuterated clathrate hydrate and
C
60
, each with paramagnetic oxygen as guest molecules. For studying the suitability of these materials for neutron moderation to very low energies, the model includes, in addition to the magnetic neutron scattering by the oxygen, the nuclear scattering by all constituents. The theoretical total cross sections are calculated based on the phonon density of states obtained by density functional theory and molecular dynamics simulations. At low temperatures, the developed scattering kernels are in good agreement with experimental neutron scattering data reported in the literature. At 20 K and above, a Lorentzian distribution for the zero-field splitting of the magnetic substates of the spin triplet of the oxygen molecules helps to reproduce magnetic peaks observed in inelastic neutron scattering experiments better than the original theory based on a single-valued splitting constant. Neutron spectra obtained by Monte Carlo simulations in infinite media are presented, highlighting the potential use of
O
2
-containing fully deuterated clathrate hydrate as a neutron moderator for the production of very cold neutrons.